Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese Standards] (Consolidated)

Business Overview

For the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales amounted to JPY 201.143 billion (16.4% YoY increase), operating income was JPY 17.525 billion (2.9% YoY increase), ordinary income reached JPY 18.598 billion (3.0% YoY increase), and net income attributable to owners of parent for the quarter was JPY 14.938 billion (20.7% YoY increase). In the Industrial Machinery segment, despite a decrease in orders for defense-related equipment, sales increased due to higher orders in other industrial machinery, resulting in operating income above the previous year. In the Materials and Engineering segment, while order intake increased significantly, net sales decreased, and operating income declined due to investments in human resources and other factors.

Financial Position and Future Outlook

Total assets increased to JPY 412.750 billion compared to the previous fiscal year-end, and although liabilities also increased, net assets rose to JPY 204.869 billion, resulting in an equity ratio of 49.3%. The full-year consolidated earnings forecast for the fiscal year ending March 2026 remains unchanged from the projection announced on May 13, 2025. Furthermore, a syndicated loan of JPY 15 billion was borrowed in January 2026 and allocated to working capital. The wholly-owned subsidiary Japan Steel Works M&E Co., Ltd. is scheduled to be merged by absorption on April 1, 2026, aiming to create group synergies and strengthen governance.